Evaluating Public Spending Efficiency and its Determinants Towards Social Outcomes: Empirical Evidence from Indian States

Author:

Kumar Sumit1ORCID,Kaur Baljit2

Affiliation:

1. Punjab School of Economics, Guru Nanak Dev University, Amritsar, Punjab, India

2. Guru Nanak Dev University, Amritsar, Punjab, India

Abstract

The topic of public expenditure efficiency has gained a key position in the spheres of public policy goals. This article tries estimating the efficiency of public spending on health and education sectors across Indian states from 1990–1991 to 2016–2017. In input–output linkage, we have computed efficiency using a slacks-based measure model of data envelopment analysis through different orientations. The study also captures the externalities of public spending efficiency with some exogenous factors. It also suggests that these exogenous factors (such as good governance, per capita income and proportion of literates in the household) have significantly improved the output efficiency score of the health as well as the education sectors across Indian states. JEL Codes: H51, H52, H21, E61

Publisher

SAGE Publications

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